For sure, Tata DoCoMo has poured in enormous capital/ investments over the past decade with little to show for all of it (so, we are not making a case for RJio?s success) ? that said, didn'g Tata along with Reliance Communications (RCom) contribute to severe voice pricing erosion that hurt the India telco industry for a few years? Why can?t RJio do the same for data and spoil its currently attractive economics for incumbents? After all, the impact on EBITDA from data price erosion will be even more given the reasonably higher margins of data
The relevant question is whether Reliance Jio, with its deep pockets and staying power, can alter the industry picture on pricing, margin, capex, data adoption, quality of experience/ network profile in a manner adverse to incumbents while it competes. RJio?s aspirations and game plan might well extend beyond the mobile to include content and video to the home; so to try and assess
a business case centering on just mobility, as several tend to do, may be placing too narrow a lens on the analysis
